Want to overpay for a simple service you could do yourself? Want to throw hundreds of dollars away? Then I've got just the thing for you. It's called a "bankruptcy petition preparer".
So what is a bankruptcy petition preparer? This is the best definition I found. This is taken directly form Nolo.com. A link to this page is here.
"A bankruptcy petition preparer is any person or business, other than a lawyer or someone who works for a lawyer, that charges a fee to prepare bankruptcy documents. Under your direction and control, the bankruptcy petition preparer generates bankruptcy forms for you to file either by typing them or inputting information into a bankruptcy software program.
Because bankruptcy petition preparers are not attorneys, they cannot provide legal advice or represent you in bankruptcy court. This means that the bankruptcy petition preparer cannot:
tell you which type of bankruptcy to file
tell you not to list certain debts
tell you not to list certain assets, or
tell you what property to exempt.
In essence, you must understand what debts your bankruptcy will discharge, what will happen to your property in the bankruptcy, and what laws should be used to exempt your property from being taken for the benefit of your creditors.
In addition, you must file the bankruptcy papers yourself and represent yourself in court. In other words, you are responsible for your case. You act as your own attorney and use the bankruptcy petition preparer as a typing service that transposes the information you give them onto the official forms."
A typing service. That's all they are supposed to be. Understand this point, first and foremost: A BANKRUPTCY PETITION PREPARER IS NOT A LAWYER! Did I say that loud enough? How about this too: A BANKRUPTCY PETITION PREPARER CANNOT GIVE YOU LEGAL ADVICE. Here goes another: A BANKRUPTCY PETITION PREPARER CANNOT REPRESENT YOU IN COURT OR AT YOUR HEARINGS! Let's see, what else? OK: THERE IS NO FORMAL TRAINING OR CERTIFICATION REQUIRED TO BE A BANKRUPTCY PETITION PREPARER. A bankruptcy lawyer has a bachelor's degree plus a degree from an accredited law school. They have also passed the bar exam and are licensed to practice law in a federal court. A bankruptcy petition preparer is not required to have any education or certification at all.
If you choose to use a bankruptcy petition preparer instead of a bankruptcy attorney, you are still completely on your own. And the cost for an attorney (who will represent you, give you legal advice and attend hearings with you) is often not much more than you'd pay the bankruptcy petition preparer. Filing for bankruptcy can be full of pitfalls, and the bankruptcy petition preparer is neither permitted nor qualified to give you any advice about whether you should file under Chapter 7 or Chapter 13 or what the consequences might be. They cannot tell you which property is exempt and which property you may lose. In short, they cannot tell you anything.
Bankruptcy petition preparers are often attractive to people because of the low cost involved. If you decide to file for bankruptcy, it can be an expensive option. Most good attorneys, however, will have flexible fees and payment arrangements that can help you get your case filed in a timely manner. But if you decide to take the risk and do it yourself, throwing hundreds of dollars at a typist could be your biggest mistake of all.
For more information on Chapter 7 and Chapter 13, visit my website at http://www.ohiobankruptcyrelief.com/.
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